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Last updated: Nov 23, 2022
Saber is an automated maker and liquidity pool provider designed to facilitate efficient trading between similarly priced assets without an opportunity cost. Through the protocol liquidity providers can earn from fees accrued from trading. Saber specializes in the trading of stablecoins as well as bridged assets and staking derivatives such as Marinade SOL and Lido SOL.
The Saber protocol consists of the following programs: Swap program contracts which handle LP tokens creation and swaps, the Saber Periphery which consists of a decimal wrapper tasked to handle adjustments of decimals, a Continuation Router which routes between different Saber pools, a Lockup controls all tokens released to the Saber team and pre-sale Investors. There is also a Mint Proxy that handles the issuance of new Saber tokens and a Redeemer which provides for the burning of IOU tokens for Saber tokens.
There is a Saber registry page which is an automatically generated JSON list of all Saber pools, within the file there is information not present on-chain, which the team has found might be useful if a user is interested in displaying information about the pools on the project.
The team claims they have brought the risk of impermanent loss to a minimum with the mechanics of the StableSwap algorithm, however they warn that there is still a risk of prices diverging from equilibrium, since in cases where one asset’s price drops or skyrockets, liquidity providers are bound to experience impermanent loss.
Saber also advertises itself as having zero opportunity cost. This is achieved by having the algorithm understand that similarly pegged digital assets (like stablecoins) should be evaluated at the same level, which is why liquidity providers can charge higher fees and earn more profit.
Saber’s LP tokens can be used in various projects from lending markets to projects collateralizing other stablecoins. All liquidity mining programs are handled by the Quarry protocol, while the Governance of the project is handled by Tribeca.
To use the Saber app for providing liquidity, users need to take part in a Saber liquidity pool, to do that it is first needed to get to the Pools tab on the website of the project and select ‘Deposit’. If taking part in a stable pair pool, depositing both tokens isn’t required, yet depending on how different the quantity between tokens is, there might be a larger transaction fee. The larger fee is supposed to incentivize close-to-equal distribution within the pool. When depositing assets in a pool, users can see their pool share as well as the amount of fees they will receive.
To use the protocol for a swap between a stable pair of assets, the user needs to get to the swapping interface of the dApp, select the tokens they want to exchange, and enter the quantity to be swapped. Once that is done, the user can click on ‘Review’ which displays a breakdown of the transaction about to be made, that, in turn, includes the amount to be earned from fees by Saber liquidity providers.
The current version of the protocol has the Saber wallet support spawning among numerous wallets such as Phantom (which is also suggested by the team), Clover, Coin98 Wallet, Ledger, MathWallet, Slope, Sollet Extension, Sollet, and Solong.
SBR is the Saber Protocol native token and is used for the governance of the project, by providing its holders with voting rights within the Saber DAO. The token can be received by SBR holders as means to reward liquidity provisioning.
The max supply of the asset is 10,000,000,000 and is allocated as follows: 31.42% are used as a mining reserve, 25.10% are for partnerships and the ecosystem, 19.58% is given to the team and its advisors, 15.48% is allocated towards strategic fundraisers, and the remaining 8.42% are used as a liquidity reserve.
While 1% of the total supply of the token was distributed during the first weeks of the program, it was done so through a vesting smart contract. The team and advisor’s funds were subject to two years linear release, just as the strategic fundraiser participant’s funds.
The company is running a grants program created from the partnerships and ecosystem funds, aimed to support projects that might benefit the Saber ecosystem. Proposals for taking part in this program are reviewed by a council of contributors gathered from the community.
Dylan Macalinao and Ian Macalinao co-founded the Saber team. Dylan Macalinao was formerly Head of Product at OKCoin and a Design Fellow at IDEO CoLab, while Ian Macalinao took part in founding Ubeswap – a DEX on Celo. The rest of the team keeps their anonymity and doesn’t keep a presence on social media.
So far, Saber Protocol hasn’t experienced major security issues or hasn’t made it public. Saber audits are being worked on at the moment and upon release to the public will be added to the protocol’s dashboard on this webpage.
The company raised $7.7M in a seed funding round led by Race Capital and backed by Chamath Palihapitiya's Social Capital, Jump Capital, Multicoin Capital, the Solana Foundation, and others. Saber Protocol is working closely with Solglare – a wallet dApp built on Solana, Badger DAO, Parrot Protocol, and others.
The latest roadmap released by the team covers the period up to Q4 2021. It includes releasing contracts for SBR holders to stake SBR tokens for voting rights and integrating dual yields through the launch of Quarry’s Merge Mine functionality. Allowing the Saber LP tokens to be used as collateral on a lending platform was also being worked on, as well as creating a frontend dashboard with more insightful analytics.
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